FAQ 877: Distribution from 401k and Roth 401k sources

Problem:

I have a person that is doing a Distribution and she is in both 401k and 401k Roth.
When I'm in Disbursement it is only letting me do a distribution for both at the same time. She has two different account numbers for each. What do I do???
Thanks, Kathi


Ken Belanger
Belanger and Company, Inc.
610.239.9750



Solution:

FYI - Programming to better accommodate Roth distributions is scheduled for winter/spring 2010.

In the meantime, enter the distribution in total via the Withdrawal Wizard. Once the sells settle, edit the record in the Pending Distribution File as needed to reflect the correct taxable amounts. From here you have two options:
1. enter the additional Roth information directly in BridgeNet prior to releasing the disbursement.
2. Or, you can create a second record in the Pending Distribution File (maintenance mode) that is identical to the original record created, but changing the 1099 code and populating the correct dollar amounts in the Gross, Net, Taxable etc. fields near the end of the record. In essence, you are creating a separate record for the Roth portion to be sent along with the taxable portion.